HELOC rates today, June 3, 2025: Interest rates on home equity lines of credit are unchanged
HELOC interest rates were stable today, unchanged from yesterday. How hot are HELOCs? In a new analysis, Intercontinental Exchange (ICE), a mortgage data provider, said second mortgage home equity withdrawals in the first quarter of 2025 grew 22% year over year to nearly $25 billion. That's the highest first quarter volume since 2008.
'Equity levels remain historically high, and now we're seeing the cost of borrowing against that equity drop meaningfully,' Andy Walden, Head of Mortgage and Housing Market Research at ICE, said in a release. 'The monthly payment needed to withdraw $50,000 via a home equity line of credit (HELOC) has fallen by more than $100 since early 2024."
Now, let's check the latest HELOC rates.
Dig deeper: HELOC vs. home equity loan: Tapping your equity without refinancing
According to Zillow, rates on 10-year HELOCs held steady at 6.81% today. The same rate is also available on 15- and 20-year HELOCS.
VA-backed HELOCs also remained stable at 6.36%.
Homeowners have a staggering amount of value tied up in their houses — more than $34 trillion at the end of 2024, according to the Federal Reserve. That's the third-largest amount of home equity on record.
With mortgage rates lingering in the high 6% range, homeowners are not likely to let go of their primary mortgage anytime soon, so selling the house may not be an option. Why let go of your 5%, 4% — or even 3% mortgage?
Accessing some of the value locked into your house with a use-it-as-you-need-it HELOC can be an excellent alternative.
HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which today is 7.50%. If a lender added 1% as a margin, the HELOC would have a rate of 8.50%.
However, you will find reported HELOC rates are much lower than that. That's because lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home.
And average national HELOC rates can include "introductory" rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate.
You don't have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit.
The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat.
Meanwhile, you're paying down your low-interest-rate primary mortgage like the wealth-building machine you are.
Today, FourLeaf Credit Union is offering a HELOC rate of 6.49% for 12 months on lines up to $500,000. That's an introductory rate that will convert to a variable rate later. When shopping lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.
The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don't pay interest on what you don't borrow.
Rates vary so much from one lender to the next that it's hard to pin down a magic number. You may see rates from nearly 7% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are.
For homeowners with low primary mortgage rates and a chunk of equity in their house, it's probably one of the best times to get a HELOC. You don't give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt.
If you take out the full $50,000 from a line of credit on a $400,000 home, your payment may be around $395 per month with a variable interest rate beginning at 8.75%. That's for a HELOC with a 10-year draw period and a 20-year repayment period. That sounds good, but remember, it winds up being a 30-year loan. HELOCs are best if you borrow and pay back the balance in a much shorter period of time.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Trump-Musk Alliance Unravels Over ‘Big Beautiful Bill'
(Bloomberg) -- From the moment Donald Trump and Elon Musk joined forces, betting in Washington held that the president's bond with the First Buddy who bankrolled his comeback election win wouldn't last. ICE Moves to DNA-Test Families Targeted for Deportation with New Contract Next Stop: Rancho Cucamonga! US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn Where Public Transit Systems Are Bouncing Back Around the World The Global Struggle to Build Safer Cars The breakup finally arrived this week, an escalating tit-for-tat between the world's richest man and the president of the US, who spent much of Thursday sniping at one another via social media posts and cameras in the Oval Office. Speaking to reporters, Trump pronounced himself 'very disappointed' in Musk over the billionaire's harsh criticism of a Republican tax and spending bill. Posting on X, his social media platform, Musk declared that Trump wouldn't have won a second term without his help. 'Such ingratitude,' the Tesla Inc. and SpaceX CEO declared. For a rift that had seemed inevitable, the descent into public recrimination was startling, even by Trump's volatile standard, which often sees former allies and underlings cast aside without fanfare. Musk spent the early months of Trump's second term offering obsequious praise and absorbing some of the political backlash of the slashing budget cuts and employee firings that have been a pillar of Trump's agenda. Trump, meanwhile, had elevated Musk, a government novice in a temporary role, to a position of unprecedented breadth to reshape and unmake the entire federal bureaucracy, with only occasional checks from the agency heads actually confirmed by the Senate. But on Thursday, their blow-up found Trump accusing Musk of trying to tank the spending bill because its elimination of electric vehicle credits hurt Tesla's bottom line, while Musk took to social media posts to deny Trump's Oval Office comments and taunt the president with his own past postings. 'Where is this guy today??' Musk wrote. Musk went so far as to poll his social media followers about whether he should 'create a new political party in America that actually represents the 80% in the middle?' Their relationship first blossomed at the height of the 2024 presidential campaign and deepened as Musk joined the new administration to slash the federal bureaucracy — a role that aligned with the tech titan's commercial interests and his politics with the philosophy of others in the incoming administration, like Russ Vought, the director of the Office and Management and Budget. But it unraveled this week over the unavoidable task of putting the administration's rhetoric about spending into practice, via a tax bill that's the centerpiece of Trump's domestic agenda. With posts on social media urging lawmakers to reject Trump's 'Big Beautiful Bill,' Musk exposed a rupture that had been growing between him and the president for weeks, fueled at first by clashes with cabinet members over agency cuts and differences with the administration's sweeping tariff plans. Musk's public break with Trump threatens further fallout for the allies he helped to install in key positions across federal agencies during his time overseeing the Department of Government Efficiency that he prodded Trump to create. It also raises questions about whether the biggest billionaire spender of the 2024 election will remain a reliable source of campaign funding to sustain Republican control of the House in the midterm elections and to make permanent Trump's political movement. Steve Bannon, the former White House chief strategist who was deputized in 2017 to confront Musk about his demands for EV and battery mandates, said he cautioned Trump and his inner circle about the entrepreneur after the 2024 election. 'I warned people in the transition, this guy is unpredictable, immature and a narcissist, and he'd turn on anybody — including the president — when it suited him,' says Bannon, who has frequently criticized Musk on his 'War Room' podcast. Bannon says Musk's downfall from his status as 'Chief Buddy' was inevitable, because he could not produce the $1 trillion in budget cuts he claimed he could during the transition. 'He was too incompetent and lied about being able to find a trillion dollars of cuts in waste, fraud and abuse,' says Bannon. 'He misled everybody, including the president.' Trump's Orbit Administration officials who have bristled at Musk's power and bedside manner have been moving to reassert their influence in the executive branch since he announced his departure from DOGE, people familiar with the matter said. That includes the installation of a close associate of White House Chief of Staff Susie Wiles as chief of staff at NASA – an agency that is crucial to SpaceX, a company that makes up a third of his net worth. People familiar with the matter said the withdrawal of the nomination of Jared Isaacman, a Musk ally who was poised to run the space agency, was driven by Sergio Gor – the director of the Presidential Personnel Office, with whom Musk had sparred during his DOGE tenure. 'A lot of Musk's power stemmed from the fact that he was seen as an extension of Trump,' said Stephen Myrow, who runs Beacon Policy Advisers. 'But now that there's distance between them, that power might be waning.' 'I always talk about the 'evolving orbit' around Trump – people are always drifting in and out,' Myrow added. 'I wouldn't say Musk's relationship with Trump is severed. But between Isaacman's nomination being pulled and his public criticisms of the tax bill, he looks to be in the waning phase of his orbit.' Earlier: Former NASA Nominee Suggests Ties to Musk Caused His Ouster A White House official in an email pointed to multiple past donations that Isaacman had made to Democrats, suggesting that was the reason his nomination was nixed. In a podcast interview Wednesday, Isaacman said he didn't believe that was the reason, given the information had long been publicly available. 'President Trump is the ultimate decision maker on who has the privilege of serving in his historic administration,' White House spokesperson Liz Huston said. 'Any claims to the contrary are completely false.' Musk didn't respond to a message seeking comment. On X, his social media platform, one user said Isaacman's removal was a 'gut punch for the space agency,' to which Musk responded with a '100' emoji, indicating he agreed 100%. 'At Great Personal Cost' The fissure caps a roller-coaster 11 months from Musk's endorsement of Trump in July of 2024. Musk spent hundreds of millions of dollars to elect Trump and Republicans in 2024, and when the once and future president defeated Kamala Harris in November's election, he turned to Musk to lead an effort to slash the size and scope of government. Musk scythed through the federal bureaucracy while Trump unleashed a flurry of executive actions, each seeking to dismantle the administrative state at what the White House came to call 'Trump speed.' Yet swift progress on conservative priorities came with a price tag for Musk, who has seen his own net worth plummet in part because of reputational tarnish at home and abroad from his political actions and affiliation with Trump. Musk's net worth — much of it tied to the performance of Tesla — has dropped an estimated $64.1 billion so far this year, according to data compiled by Bloomberg Billionaires Index. It's the largest on-paper loss of any of the world's 500 richest people. And now, on his top political focus point of deficit reduction, any success Musk can claim — achieved, in his own words, 'at great personal cost and risk' — may be drowned out by the president's own signature legislation. The Congressional Budget Office projected that the House-passed tax and spending bill at the center of Trump's legislative agenda would add more than $2.4 trillion to US budget deficits over the next 10 years, slashing revenues by $3.67 trillion while only cutting spending by $1.25 trillion. That's way above even DOGE's most optimistic savings estimates. Its government website listing estimated savings states that DOGE has saved taxpayers about $180 billion year-to-date. However its 'Wall of Receipts' — a line-by-line list of contracts, grants and leases canceled since Inauguration Day — only accounts for less than half of that number. Adding to the risk for Musk's bottom line, Trump's bill would wipe out some valuable tax incentives that bolster his own companies. Musk personally appealed to House Speaker Mike Johnson to save tax credits for electric vehicles, according to a person familiar with the matter, but ultimately lost that fight. In an interview with Bloomberg Television on Thursday, Johnson did not confirm whether Musk had approached him over the credits, but said the two would speak later in the day, adding that Musk seems 'pretty dug in right now, and I can't quite understand the motivation behind it.' Musk's criticism of the spending package built slowly. On Tuesday, however, Musk lashed out, posting on his social media platform, X, that the bill was 'pork-filled' and 'a disgusting abomination.' Adding insult to injury for the White House, Musk has embraced the very argument that the administration has been trying to combat, noting the bill would significantly widen the federal budget deficit. By Wednesday afternoon, Musk was posting about 'debt slavery' and sharing an image of Uma Thurman holding a samurai sword — the poster for the film 'Kill Bill.' Widening Rift The rift between the two billionaire showmen — each renowned for seeking out the spotlight, and not for sharing it — had seemed to be widening for a while. Even as Musk embraced his DOGE role and continued making periodic appearances at the White House, he broke with some of Trump's policies. Musk has criticized tariffs, the primary tool in Trump's economic agenda, but one that has shown the potential for massive disruption in markets Musk moves in, including those for batteries critical to the fate of Tesla's automotive and energy units. An outside Trump adviser said the president remained furious about an incident, reported by The New York Times, in which Musk angled to obtain a classified briefing from the Pentagon about the upshot of a war with China, where Musk has extensive economic interests, especially via Tesla. As public furor grew over DOGE's unilateral cuts to federal agencies, Trump publicly reined Musk in, asserting that cabinet officials would have final say over proposed reductions. In a May 20 appearance at the Qatar Economic Forum, Musk told Bloomberg's Mishal Husain he intended to pull back from political giving, only months after spending nearly $300 million to boost Trump's successful campaign for the White House. Sour Taste Behind the scenes, Musk's sojourn through the West Wing left a sour taste for some officials, according to the outside adviser and one person within the administration. The outside adviser particularly noted Musk's brusque treatment of Wiles, who managed Trump's victorious campaign before joining the administration. It was a longtime Wiles ally, Brian Hughes, who was sent to serve as NASA chief of staff, a position from which he could serve as a check in an agency that is central to SpaceX's fortunes. A senior White House official said Wiles and Musk had a cordial and collaborative relationship, and that the chief of staff met weekly with the tech entrepreneuer as he led DOGE. The official said Hughes had long wanted to work at NASA, and that his placement there was not an effort to keep tabs on Musk and SpaceX. A person familiar with SpaceX discounted the chance that bad blood between Musk and Trump would have an immediate negative effect on the company, because it has carved out such a dominant position in the launch business even as corporate rivals have struggled. But the person said there is frustration that the company's brand has been damaged, first with Democrats who were appalled by Musk's embrace of Trump and DOGE's tactics, and now with Trump supporters in Washington, who will likely side with the president over Musk. But Musk's time with Trump has already yielded benefits in other ways, said Myrow, especially in areas where the administration or DOGE pulled the plug on aspects of the regulatory state that had previously tangled with his companies. 'For Musk personally, the SEC stuff went away,' Myrow said, referring to Securities and Exchange Commission investigations. 'And he's long wanted to turn X into an 'everything app,' and now a lot of the regulations that would have inhibited that are going away.' --With assistance from Nancy Cook, Erik Wasson, Annmarie Hordern, Lisa Abramowicz, Michael Shepard and Derek Wallbank. (Updates with Musk, Trump remarks in paragraphs 3, 6; Bannon remarks in paragraphs 12-14) Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
36 minutes ago
- Yahoo
The 'anti-Tesla' gives American buyers more good news
The 'anti-Tesla' gives American buyers more good news originally appeared on TheStreet. Anyone who's tried to buy a new car recently knows that the market is becoming increasingly complicated, mostly due to rising prices. Data from the consumer price index (CPI) shows that new car prices have surged 22% since 2019. Despite decreasing slightly in 2024, they are back to trending upward. Meanwhile, mounting supply chain pressure has pushed up some used car prices to more than $30,000 for the first time in two years. 💸💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💸 There's no question that so far, 2025 is a seller's market for the automotive industry. On top of that, President Donald Trump's tariffs continue to spark high economic uncertainty. The combination of high prices and a deteriorating labor market makes this an especially difficult time for automakers that primarily deal in expensive vehicles, such as Tesla () . But a new company in the space recently revealed something positive for consumers. Even as car prices rise, electric vehicle (EV) demand isn't slowing down. While Industry leader Tesla TSLA has reported declining sales across multiple markets, a report from Cox Automotive shows that EV sales rose more than 11% year-over-year (YOY) in Q1 of Tesla's problem has been its inability to sell the Cybertruck, its futuristic electric truck that hasn't been as popular as the company initially estimated. Photos have shown Cybertrucks sitting idly in parking lots across the country. Some drivers who did buy them have attempted to trade them in, despite high value depreciation. For anyone seeking a fuel-efficient truck, though, a company described as the 'Anti-Tesla' is working hard to provide a much more affordable alternative. A Jeff Bezos-backed startup called Slate Automotive is turning heads with its electric pickup trucks, described as 'affordable, deeply customizable, and very analog' with no infotainment screen. Slate's small, sleek, traditional-looking trucks even come with manual windows, harking back to a previous manufacturing era. In other words, its vehicles are a stark contrast to the highly priced, futuristic Tesla Cybertruck. As The Street reports, so far, demand for these vehicles has been high, with the number of pre-reservations exceeding 100,000 as of early May. While those figures aren't sales yet, they indicate that many consumers are interested in owning a Slate truck. Now the company may be about to add even more prospective buyers to that list. Jeff Jablansky, Slate's head of public relations, recently revealed that even without EV tax credits, the company's new trucks will be priced in the 'mid-$20,000s,' making them more affordable than many used vehicles. 'When [consumers] turn to something that is more affordable, it usually has higher miles, probably is older, the condition is not as great,' he states. 'So we're working in that framework.' More EV News: Fund manager has shocking Elon Musk and Tesla prediction Tesla faces big threat from rivals in key market Honda CEO shares a bold take on the future of electric vehicles Musk initially promised that the Cybertruck would cost only $40,000 before raising its price to $100,000. However, Jablansky adds that Slate won't budge on keeping its prices below $30,000. He also believes that the company will be able to deliver on the range it has promised, something else that Tesla did not do. Trump's tariffs have raised some concerning questions for U.S. automakers, as companies brace for rising production costs and supply-chain constraints. But since Slate's trucks are being built at the company's facility in Indiana, Jablansky sees the company as shielded from the impact of these policies.'The next year and a half, pretty much till delivery, we're refining what we've done. We're not making big engineering decisions — those have been done already. At this point, we're testing, evaluating, refining,' he says. If Slate is indeed more protected than its larger peers from the impact of Trump's tariffs, the company will likely be able to deliver on its promise to keep prices low as its trucks move from the production line to the road. Additionally, if new vehicle prices continue rising, consumer incentive to buy a new brand of truck for less money is likely to remain high. Slate's strategy of creating an affordable electric truck for workers that reintroduces basic design features could be poised to pay 'anti-Tesla' gives American buyers more good news first appeared on TheStreet on Jun 5, 2025 This story was originally reported by TheStreet on Jun 5, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
an hour ago
- Miami Herald
Elon Musk says Trump would've lost election ‘without me' as public rift widens
The public rift between President Donald Trump and Elon Musk has widened, with the pair exchanging new barbs — just days after Musk departed the administration. In an Oval Office meeting on June 5, Trump told reporters, 'I'm very disappointed with Elon. I've helped Elon a lot.' He was referring to the SpaceX CEO's recent posts on X, which have been critical of the GOP-backed spending bill, which he labeled a 'disgusting abomination.' 'Elon knew the inner workings of this bill better than almost anybody sitting here. … He only developed a problem when he found out that we're going to have to cut the (electric vehicle) mandate,' the president said in the White House meeting. Attempting to explain Musk's new criticisms, Trump ventured to guess that the billionaire businessman might 'miss' working for the government. Musk, who worked as a 'special government employee' at the Department of Government Efficiency (DOGE), officially left the administration on May 30. Trump also downplayed Musk's impact on the 2024 election — during which the CEO spent more than $200 million on Trump's campaign, as well as on the campaigns of other Republicans. The president said he believed he would have won Pennsylvania 'easily anyway.' Musk quickly responded in a series of posts on X. 'Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,' he wrote. 'Such ingratitude,' he added. Musk also reposted a series of old posts from Trump — some from over a decade ago — in which Trump called for balancing the federal budget. 'Where is this guy today??' Musk wrote.
